What LSI Industries, Inc. told the SEC could break it.

LSI's results are exposed to price fluctuations in raw materials and components — aluminum composite material, expanded PVC, vinyl film, styrene, foamboards, wood/laminates, condensing units and digital screens — with approximately $263.1 million of cost of goods sold subject to price risk in fiscal 2025; the company does not actively hedge, so commodity-price increases (and tariffs) could materially compress margins.

“For the fiscal year ended June 30, 2025, the purchased material component of cost of goods sold subject to price risk was approximately $263.1 million. The Company does not actively hedge or use derivative i”

LSI has a concentration of sales in the refueling and convenience-store and grocery markets; demand from the refueling/convenience-store market depends on the general conditions and profitability of the petroleum industry, so a downturn or structural change in those end markets (or in petroleum) could materially and adversely affect LSI's business.

“The Company has a concentration of sales in the refueling and convenience store and grocery markets. Sales to the refueling and convenience store market are dependent upon the general conditions prevailing in and the profitability of the Petroleum industry and general market conditions.”

LSI's Display Solutions segment produces inventory against customer commitments for rollout programs (single sites to many stores), but the risk exists that a customer cannot or will not honor its commitment — due to bankruptcy or a change in the customer's image direction — leaving LSI with produced but unsold custom inventory, a working-capital and credit-loss exposure.

“The risk does exist that a customer cannot or will not honor its commitment to us. The reasons a customer cannot or will not honor its commitment can range from the bankruptcy of the customer to the change in the image d”

LSI sources some purchased components from or manufactured in foreign countries, so U.S. import tariffs on component parts and certain finished-goods inventory increase the cost of products made at its U.S. and Canada plants and can raise prices even for domestically sourced materials; continued U.S. trade-policy uncertainty and retaliatory measures could depress demand and restrict supplier/customer access.

“Tariffs implemented on our component parts and certain finished good inventory will increase the cost of our products manufactured at our plants in the U.S. and in Canada. Some of our purchased components are sourced from or manufactured in foreign countries.”